Wunderlich Reiterates Buy On Republic Services

Wunderlich Securities is reiterating its Buy rating and $37 price target on shares of Republic Services Inc. RSG. In a note to clients, Wunderlich Securities writes, "We reiterate our Buy rating and $37 target on Republic Services (RSG). The waste business has high barriers to entry. The industry's recent consolidation results in RSG and Waste Management (WM-$36.54, Hold) controlling 65% of the permitted U.S. disposal capacity. Like the railroads in 2000, the consolidation of the industry coupled with the essential nature and high barriers to entry support why its six-year trend of real price growth is sustainable. RSG is a top player in solid waste with strong management, high operating margins, and sustainable FCF growth, all of which should make it an excellent acquisition candidate for Warren Buffet, in our view, especially at current valuations." Shares of RSG closed at $30.09 yesterday.